 In this presentation we will discuss budget timing typically the standard budget for most companies will cover a year So we'll have the annual budget. We'll have the annual budget, which we'll cover the next year. We're looking into the future Of course, we're doing the budgeting process. We're looking for the future year First a word from our sponsor Well, actually these are just items that we picked from the YouTube shopping affiliate program But that's actually good for you because these aren't things that we're just given to us from some large corporation Which we don't even use in exchange for us selling them to you. These are things that we actually researched Purchase and use ourselves. Here. We have a Western digital WD elements 20 terabyte USB 3.0 desktop External hard drive we use as part of our backup system Noting that if you lower the number of terabytes of storage the price will lower dramatically as well When you're thinking about a backup system You usually think about an online system or an external hard drive system like this or ideally some Combination between the two given you some redundancy You can also work directly from an external hard drive like this But there are some drawbacks to doing that one being if you use this as your primary drive you're working from It's no longer a backup drive and you're gonna need a backup system possibly another external hard drive and or some kind of cloud backup system and If you're working on something that takes up a lot of short-term memory a lot of RAM as you're working on it Such as video editing the external hard drive can slow up the system So you might want to come up with some kind of system where you download the project You're working on to your computer to your C drive or possibly to a solid-state drive, which is a much more expensive External hard drive as you do the work once the work is done Then save the project to an external hard drive such as this If you would like a commercial free experience consider subscribing to our website at accounting Instruction.com or accounting instruction dot think a thick dot com where we have many different courses You can purchase one at a time or have a subscription model given you access to all the courses Courses which are well organized have other resources like Excel files and PDF files to download and no commercials Once we have that future year budget in place We'll often break that down into smaller chunks Those smaller chunks typically being a quarterly budget and then possibly even smaller into Monthly budgets if we take that yearly budget and then break it down into quarterly and monthly That gives us some feedback that then we can go on as we go through the year So as we go through each month as we go through each quarter We can review what we're doing as we go. We can compare actual to what we budgeted to happen We can see the variance or the difference and we can make decisions and adjustments as we go through that year So we can also envision it in this way. We would have the annual budget That's going to be the overarching budget that we would then make and then within that We're going to have the quarterly budgets that will then break that annual budget into and then we'll have the monthly budget And then as we go through the year every month We can take a look at that monthly budget do the comparison on the monthly budget every quarter We can take a look at that Compare the actual to the budgeted amount for the quarterly budgets and of course do the same thing for the annual budget as well Some companies may also prepare a rolling or continuous budget and the idea of the rolling or continuous budget is for us to Update the budget after each time period so as a period goes by say a quarter goes by or a month It goes by then we're going to update the budget so that we're always looking out a year into the future So as the quarter goes by and our example here We then recalculate the budget and we look out a year out so that we always looking out that year into the future We're going to update the budget as we go as we roll through the process. We'll do the same thing for the next quarter So it would look something like this We have the standard yearly budget and then a quarter goes by we're going to reset the budget We're going to look out a year based on that new information as we do this You can see that it has a few benefits of it and some costs, of course One of the costs is it's going to be more expensive for us to think about how are we going to reset the budget? After each period that goes by one of the benefits is going to be that we can have that comparison as we go through this We can have that whole communication process Again as we reset the budget as we think about how it goes out a year out And we can always have be thinking a year out into the future. So when we consider the budget We're always kind of viewing one year out into the future and you can think of it as a car driving down the road You can only see as far out as your headlights go Well, the headlights are always going you know a year out into the future They always have that standard set that standard look as we are budgeting through the process So we can think of those headlights staying out there giving us that focus as we drive down the road